Financial highlights

Net Gaming Revenue ("NGR")1 £'000

£88,968

+8.7%

20181
88,968
2017
81,815

Adjusted EBITDA2 £'000

£16,097

-18.2%

2018
16,097
2017
19,670

Adjusted net earnings2 £'000

£14,684

-19.6%

2018
14,684
2017
18,268

Proposed final dividend per share pence

1.7p

+13.3%

2018
1.7
2017
1.5

Operational highlights

Deposits £'m

£157m

+6.8%

Yield per player3

£144

-2.0%

Funded players4

137,000

-6.1%

Mobile and touch devices
% of the GGR5

69%

+4.5%

  • Solid performance in Real Money Gaming (“RMG”), driving an 8.7% increase in Group NGR1
  • Like-for-like Adjusted EBITDA2 , normalising the impact of changes in the UK Point of Consumption (“POC”) Tax introduced on free bets in August 2017, increased by 1.5%
  • Strong balance sheet with net cash of £26.6 million (FY 2017: £23.7 million) with a high cash conversion rate
  • Proposed final dividend of 1.7p per share, taking the total dividend for the full year to 3.0p per share (FY 2017: 2.7p per share), covered 6.5x by Adjusted net earnings
  • Intention to return the anticipated proceeds from the sale of QSB Gaming Limited (£6m) to remunerate investors by way of a special dividend next year (8.0p per share)
  • Utilising the Group’s ability to generate strong cash returns, the Board intends to adopt a policy for FY 2019 and going forward of distributing at least 50% of Adjusted net earnings to shareholders through dividends
  • Strong performance of the Group’s proprietary platform, resulting in an increase of 23.8% in Real Money Gaming NGR to £60.5m (FY 2017: £48.9m). This is in line with the Group’s strategy to focus players onto the higher-margin, in-house platform
  • Solid organic growth in UK RMG:
    • Deposits up 6.8% to £157m (FY 2017: £147m)
    • Yield per player3 down 2.0% to £144 (FY 2017: £147)
    • Funded players4 down 6.1% to 137,000 (FY 2017: 146,000) resulting from the Group’s strategy to focus on the lifetime value of a player
    • Group gross gaming revenue5 (“GGR”) through mobile and touch devices increased by 4.5%, representing 69% (FY 2017: 66%) of the total RMG GGR
  • Final conclusion of investigation by the UK Gambling Commission (“UKGC”) resulting in a £7.1 million fine
  • Stride Together, the Group’s B2B offering, has seen significant traction during the year and is performing in line with management’s initial expectations
  • Disposed of minority interest in Spanish operator QSB Gaming for initial cash consideration of £4.4m (FY 2017: Nil) and expected additional £6.0m as contingent consideration

The prior year comparatives have been adjusted to remove the impact of discontinued operations.

Download Highlights
  1. NGR includes the Group’s share in Asper’s revenue and was adjusted to demonstrate the impact of the Group’s 50% revenue share. This adjustment increased revenue by £3.5m with no impact on Adjusted EBITDA.
  2. Adjusted net earnings and Adjusted EBITDA exclude income or expenses that relate to exceptional items and non-cash share-based charges. A reconciliation between the current and prior year’s reported figures to Adjusted net earnings is shown in the Chief Financial Officer’s report.
  3. Yield per player means the total net cash in the last three months of the Period divided by the number of funded players at the end of the period.
  4. Funded player means an active player who has deposited their own funds within the last three months of the period.
  5. GGR means gross gaming revenue, being total bets placed by players less winnings paid to them.

At a glance

Leading online gaming operator

The Company operates a multi-branded strategy, using a combination of its proprietary and non-proprietary licensed software to provide online bingo, casino and slot gaming.

Our products

  • Online RMG bingo is a multiplayer pool-based game, which is a risk-free model
  • Large number of casino and slot sites
  • B2B offering to license our platform to third parties
  • Rummy-focused online gaming operating across India
Download At a glance
150

brands are owned by Stride Gaming

Third largest online operator in the UK bingo-led market

Composition of revenue 2018

Proprietary

Leading online operation using our in-house developed and purchased software to provide online bingo, casino and related gaming activities to players.

68% Proprietary
32% Non-proprietary

Non-proprietary

Following the 8BAll and Tarco acquisitions an August 2016, this operation uses third-party software to provide related activities to players.

Business model and strategy

Key strengths in a growing UK market

Well-established operator in the UK

Experienced and dedicated management team

Own proprietary platform supports agility, flexibility and profitability

Investment in improved compliance, responsibility tools and processes – committed to continuous improvement

Our vision is to be a leading online gaming company

1

Focus on the UK market to grow market share

2

Invest in our platform to improve user experience and maximise returns

3

Streamline the cost base and maximise efficiencies

4

Leverage technology and expertise to grow in related areas

Compliance with regulation

Download Strategy

Review of 2018

Focus on core strengths

I am pleased that despite challenging fiscal and regulatory conditions we have been able to grow the Group’s core proprietary platform business by 23.8% during the year.

Nigel Terrence Payne Chairman 21 November 2018
Download Chairman's statement

Being a winner in a disruptive market

In a year of major transition in the UK market, the benefits of owning and developing our own proprietary platform have never been stronger.

Stuart Eitan Boyd Chief Executive Officer 21 November 2018
Download CEO statement

Solid organic growth

The Group delivered encouraging NGR growth of 8.7% to £89.0 million1 (FY 2017: £81.8 million) against an evolving and challenging UK market. This growth rate was achieved as a result of the strength of our in-house proprietary platform together with the integration of 8Ball, Netboost Media and Tarco into the Group post the completion of the acquisition earn-out periods.

Ronen Kannor Chief Financial Officer 21 November 2018
Download CFO statement
1 NGR includes the Group’s share in Asper’s revenue and was adjusted to demonstrate the impact of the Group’s 50% revenue share. This adjustment increased revenue by £3.5m with no impact on Adjusted EBITDA.

Our market

Capitalising on a disrupted market

Stride Gaming has continued to solidify its position in its core UK bingo-led online gaming market.


Stride Gaming continues to expand its multi‑brand strategy and today operates over 150 sites, equating to approximately one in four online bingo brands in the UK, whilst focusing on its core proprietary brands. The Group’s scale, technological edge and multi-brand strategy mean that it is very well positioned to continue to grow and take market share despite external industry pressures.

  • Casino
  • Betting
  • Betting exchange
  • Bingo
  • Pool betting
Our market

The estimated size of the total UK bingo and casino market

£2.8bn

Stride is the third largest online operator with a share of

11%